Trust Newsletter #11 – Why Trusts Protect Your Assets/Estate

Hi Folks

Mark Pytellek here again, of Private Trust Makers (PTM), the makers of your Trust.

Here’s the next chapter of the Non Registered Trust story on how you can engage your Trust to favor your financial future.

To all our valued Trust clients, including the most recent new ones, welcome to our monthly free educational circular as part of our program to educate and upskill our Trust clients so they learn to competently use their Trust without having to run to and rely on lawyers or accountants, thus saving you time and money. The earlier Trust Newsletters are available, free, on our website www.solutionsempowerment.org within the “Non Registered Trust” section under the tab “Resources”

Today’s subject matter topic is “Why Trusts Protect Your Assets/Estate”.

Notice 1 the information delivered below is not legal ad-vice.
Notice 2 I am not a practicing lawyer nor a Certified Accountant.
Notice 3 the information delivered below is strictly private and confidential, delivered for your personal benefit

2 Elements of Title

A title, such as a Real Estate Title – called “Certificate of Title”, a Birth Certificate or a gold certificate, is evidence of a pre-existing real – substance item of higher status.

A Certificate of Title evidences there is pre-existing real property.
A Birth Certificate evidences there is pre-existing of a living little man or woman.
A gold certificate evidences the pre-existence of a disclosed amount of gold.
A Certificate “certifies” the pre existence of the substance, not that certification was ever required by the substance!

Titles consist of two essential elements;

1. Legal title, being the element of ownership, and
2. Equitable title, being the element of use and possession of the item referred to within the Certificate of Title.

Ordinarily most folks purchase goods, services, property in their own name, thereby bearing both legal and equitable title. They have complete title of the goods, services or property, both ownership and the right to use and possession.

And … ordinarily having complete title and hence full control over the goods, services or property is the intended aim of any purchase or assignment.

However, there is a potential fatal downside to having complete title and hence full control over the goods, services or property.

If you are indebted to a creditor and are in the unfavorable financial disposition of being unable or incapable of meeting the obligation of repaying a debt, your assets may be seized by a Court Order facilitated by the creditor in lieu of the debt. The creditor wants to recover his/her entitlements under the terms of a contract.

Another example is where there civil litigation for damages or injuries are recovered from your assets/estate where you have insufficient insurance to compensate against a claim.

A Trust is a Legal Entity/Structure and is not you 

A Trust has the same legal status as a “person” and hence it may hold title (“is vested”) in Trust.

By reason a title held in Trust is split between a number of parties called Trustee/s and Beneficiary/ies,

The Trustee/s hold the legal element of the title (ownership) while

The Beneficiary/ies hold the equitable element of the title (right to use and possession).

By reason no one party to the Trust has complete title to the asset/estate, when a party is indebted to a creditor, that creditor cannot garnish the assets/estate held in Trust because other parties to the Trust have an interest in the assets/estate and hence any attempt to garnish those assets/estate in Trust is tantamount to theft and is deemed as such in any Court in any country. No innocent party is permitted to be harmed by a creditor to one party to a Trust. The amount of interest in the assets/estate held in Trust that each party to a Trust has cannot be determined, at least not without willing co-operation from all parties to the Trust, and hence the Trust effectively shields the assets/estate from all creditors to any individual party to the Trust!

Of course, a creditor to any party to a Trust may still proceed with lodgment of a caveat or lien against the asset/s/estate held in Trust but most expire after a 12 month period and you can then remove the caveat or lien again.

Lodging a caveat or lien against a Trust asset/estate by a Creditor to a party to a Trust is about the worst that a creditor can do. There is no recourse for the creditor to recover debts from a Trust estate.

 The debtor can remove the Caveat or lien once its active period of 12 months has expired by attending the registry of the Court where the caveat or lien was filed and asking the Registrar to draft a short note stating the caveat or lien filed on your title has expired, then attend your State Titles Office with the note, complete an application to remove the caveat or lien and pay the fee. The caveat or lien will then be immediately removed.

We hope this information was useful and of benefit to you.

Look for the next Trust circular for further insights into practical and exciting applications of the use of your Trust.

Kind Regards

Mark Pytellek
Principal
Private Trust Makers
in conjunction with Solutions Empowerment